Mining & Staking Crypto Tax CPAs

Why mining and staking tax is different

Mining and staking rewards are treated as ordinary income at the fair market value when received. Then, when you sell the coins later, you recognize a capital gain or loss on the difference between the income value and the sale price — a double taxation structure many miners miss.

• Income recognition: FMV of rewards at receipt = ordinary income
• Equipment depreciation: Mining rigs, ASICs, and GPUs can be depreciated under Section 179 or MACRS
• Electricity: Deductible as a business expense for hobby vs. business miners
• Staking: IRS treats rewards as income at receipt (per Rev. Rul. 2023-14)
• Node operations: Validator rewards, slashing losses, and hosting costs all factor into basis